Resource World Magazine

A U G U S T / S E P T E M B E R 2 0 1 7 www.resourceworld.com 71 OIL & GAS First Helium to target rare gas in Western Canada by Ellsworth Dickson We are all familiar with helium party bal- loons; however, considering the more practical and even critical uses of the lighter-than-air gas, it's a wonder it can be sold for such frivolous uses. Helium is the second most abundant element in the universe but finding eco- nomically viable concentrations can be difficult. Known as a noble gas, like neon and argon, the helium in common use today (Helium-4) is inert, non-flammable, non-toxic, and has an extremely low melt- ing point (-272 degrees C). Before its use in blimps in the 1920s, hydrogen was used as the lifting medium. The age of airships ended with the tragic burning on the Hindenberg in 1938. Of note, helium is 82.6% lighter, or less dense, than air. Hydrogen is only 7% more buoyant than helium, an inconsequential number. What makes helium the focus of new company First Helium Inc. is the fact that there are very limited supplies of this valuable gas and a strong and increasing demand. Indeed, while natural gas sells for less than US $3/Mcf, helium sells for US $200-$500/Mcf. Besides party balloons, why is helium so useful? It is used for a variety of indus- trial and medical applications that include MRI machines, leak detection (because its molecules are so tiny), rocket engines, optical fibers, semiconductors, and under- water breathing devices to name a few. On the supply side, the US supplies its helium to the government which then passes it on to users. However, the American stockpile of helium is decreasing and production is gradually decreasing. Other sources around the world are either in dodgy countries like Russia and Qatar or undeveloped sources in Tanzania. Helium is created by the radioactive decay of uranium and thorium. And while any helium that makes its way to the sur- face of the Earth rises and makes its way into space to be lost forever, helium gas continues to be generated. While originally discovered in 1868, it wasn't until 1903 that it was produced from an oil well in Kansas. First Helium has joint ventured with Petrel Robertson Consulting Ltd. (10% interest), an international company that provides oil & gas exploration and development services to clients in over 40 countries. Combing through data on hundreds of shut-in wells in the Western Canadian Sedimentary Basin, Petrel Robertson has culled them down to the best wells with known economic grades of helium; that is, at least 0.7% helium. Pending completion of financing arrangements, the partners will re-enter the prospective shut-in wells (where helium was ignored in the past) either by re-drilling the hole or sometimes by just turning a valve. After a well is cased and flowing again, skids carrying purifica- tion facilities are delivered to the wellsite where the helium is separated from natu- ral gas, nitrogen and CO 2 and finally put through a helium scrubber (pressure swing adsorption) to achieve 99% purity. For medical and certain industrial custom- ers, the helium purity can be bumped up to 99.999% purity. The purification pro- cess will be contracted out to companies that specialize in those operations. First Helium is raising $2.2 million in total. The company was formed through the acquisition of an Australian-listed shell. To start, First Helium will be trad- ing on the ASX (ticker symbol 1HE) to be followed by a listing on the Canadian Securities Exchange – expected in the next few months. It is anticipated that field operations will begin this fall with due diligence to deter- mine what kind of well access is required to be followed by pre-production prepara- tions. Vance Loeber, Managing Director, said he expects helium production to start within 18 months if not sooner. n * Resource World does not sell your information to third parties #604-700 W Pender St., Vancouver BC V6C 1G8 Canada online at www.resourceworld.com or phone 1.877.484.3800 SAVE 50% up to Resource World (Print and Digital Edition) 1 Year/6 issues (CAD $24.95) Resource World (Digital Edition) 1 Year/6 issues (CAD $12.95) Resource World International (outside Canada and USA (Print and Digital Edition) 1 Year/6 issues (CAD $99.95) NAME ADDRESS TEL EMAIL

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